Nevada Regulator Takes Action Against Prime Trust, Seeks Receivership

By Lola Coin Jun 27, 202360Views

The Nevada Financial Institutions Division has filed a petition for receivership over crypto custodian Prime Trust. The regulator claims that Prime Trust is operating in an unsafe and unsound manner and is insolvent, as stated in a Cease-and-Desist Order issued on June 21, 2023. The petition aims to appoint a receiver who will assume control of the company’s day-to-day operations and conduct a thorough examination of its finances. The receiver will then determine the best course of action to protect Prime Trust’s clients, which could include rehabilitating and returning the company to private management or liquidating it. Last week, the Nevada Financial Institutions Division announced that Prime Trust was unable to fulfill all customer withdrawals.

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